'Jewish terrorism' poses existential threat to Israel, leading think tank warns

Israeli state institutions are at risk of collapse due to surging settler terrorism, a leading Israeli think tank warned on Monday, as anti-Palestinian violence sweeps the occupied West Bank.

The Institute for National Security Studies (INSS) said the empowerment of ultranationalist Israeli forces is weakening the military, eroding law and order, and deepening the country's international isolation.

 "Jewish terrorism has evolved from a local enforcement problem into a distinct strategic threat to the State of Israel and its democratic character," it wrote in a strategic alert.

"We warn of a threat to Israel’s very ability to govern and function. As history teaches us, democracies that fail to restrain radical forces within them do not survive," it said.

This is only the second time the INSS has issued a strategic alert. The other time was in March 2023 when it issued a warning about the political crisis triggered by the far-right Netanyahu government's attack on the judiciary.

Since taking power at the end of 2022, Netanyahu's coalition has presided over a surge in anti-Palestinian violence, facilitated by extremist ministers from the Jewish Power and Religious Zionism parties.

The rate of violence has increased every year since 2023, reaching a record high this year, according to the UN.

Israel's security establishment recorded 660 incidents of settler violence in the first half of 2026, up 63% on the second half of 2025 and 50% higher than the same period a year earlier.

The intensifying pogroms have been accompanied by the destruction of dozens of Palestinian villages and the forced displacement of tens of thousands of civilians by settlers and the Israeli military.

Settlers are also becoming increasingly aggressive towards Israeli soldiers and law enforcement, with such incidents climbing more than a third in the first six months of 2026, INSS said.

Kobi Michael, senior researcher at INSS, said settler extremism poses a "very severe threat" to Israel's security, particularly in the run-up to the highly contentious general election in October.

"Jewish terrorism and violence in the West Bank is something that feeds very deep political rifts and disputes in Israeli society," he told The New Arab. 

"I'm very concerned that the violence will not be stopped in the West Bank. If it is not tackled, I almost have no doubt that it will penetrate Israeli society."

The report said that the failure to prosecute violent settlers, political support for the perpetrators, and the weakening judicial system are "creating a reality marked by lawlessness, non-recognition of state institutions, and the loss of the state's monopoly on the use of force".

The lack of a response to the violence "constitutes evidence that it is a policy directed from above", it said.

Among the most influential ministers in the settler movement is the extremist national security minister Itamar Ben-Gvir, who has incited violence against Palestinians, armed thousands of settlers, and lifted restraints on police officers and prison officials' use of violence.

The report also warned that settler violence is increasing Israel's international isolation and inviting intensifying sanctions.

The UK announced last week it would cut ties with Israeli settlements, with Foreign Secretary Ed Miliband accusing members of the government of facilitating ethnic cleansing and encouraging settler terrorism in the West Bank. It has been joined by other Western nations including France, Canada, the Netherlands, Ireland and Spain in banning settlement trade.

"Jewish terrorism, together with an unchecked settlement policy, has become one of the most effective instruments in the international campaign against Israel," INSS said.

"This campaign portrays Israel as an aggressive, oppressive and racist state that effectively advances ideas of ethnic cleansing of Palestinians."

INSS is one of Israel's most prominent think tanks and has close ties to the country's security establishment.

The alert echoes several letters signed by retired defence and security officials in recent months, which have urged the government to rein in settler terrorism in the West Bank.